Pearse Doherty (Donegal, Sinn Fein)
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630. To ask the Minister for Housing, Planning, and Local Government the average cost of the local authority mortgage protection insurance scheme through the Rebuilding Ireland home loan scheme; the way it compares to the average cost of mortgage protection insurance in the Irish market; and if he will make a statement on the matter. [31760/21]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The local authority mortgage protection insurance (MPI) scheme applies to all Rebuilding Ireland Home Loans and is charged at the rate of 0.555%. This is added to the overall cost of the loan.

It is important to note that the local authority MPI scheme covers disability as well as death and that the disability cover is for the full period of the disability and not just 12 months as is the case in the majority of MPI policies available.

Standard MPI products are individually priced based on a member's age, amongst other factors, whereas the local authority MPI scheme is a group arrangement offering a single group rate per €1,000 sum assured to all participants in the scheme. Aside from the difference between an individual and a group rate, the following factors have the main influence on determining the price of the local authority MPI scheme:

standard mortality and morbidity factors based on population actuarial statistics;

the local authority borrowers’ risk profile;

the terms and conditions of the local authority MPI scheme and, in particular, the fact that all local authority housing loan borrowers are accepted without medical evidence;

the claims experience of the local authority MPI scheme.

In determining the rate for the local authority MPI scheme, consideration was given to all of the above factors, and the procurement process that was undertaken reflected those requirements. It is important to also point out that there are a number of additional features of the local authority MPI scheme as follows:

in the event of a claim, the insurance covers the amount of the mortgage repayable on death which is similar to standard MPI;

the member’s mortgage repayments are covered if there is a claim as a result of disability andnot death; this additional feature is not included in standard MPI products;

an extra cover of €3,000 is also provided in the event of a member’s death, which is not included in standard MPI products;

the local authority MPI scheme covers members to age 75 for death, while ordinary MPI is usually based on a ceasing age of 65 unless an older age is agreed and priced.